Lawmakers alarmed by bourse closure

Attorney lauds court order, says action was necessary

Ghenwah Jabouri
and agencies

KUWAIT: A number of MPs have criticized a Court of First Instance order to halt trading on the Kuwait Stock Exchange (KSE), saying that the court''s move is "the most dangerous decision" ever taken in relation to Kuwait''s economy and bourse.
They explained that closing the bourse has cemented a lack of confidence and will drive the index down further once trading resumes, while rhetorically asking who would bear the consequences of such an eventuality.
They also stressed the need to benefit from the experiences of other countries to strengthen the Kuwaiti stock market.
The MPs also called on the government to take measures to limit damages resulting from the closure of the KSE.
In an exclusive statement to Al Watan Daily, attorney Labid AlـAbdal said the global financial crisis is finding its effects on many strong markets around the globe and that the situation requires Kuwait and other GCC countries to draw up a serious plan to protect its markets.
"Kuwait should choose safe investments and strengthen its reserves of gold at the Central Bank of Kuwait," he added.
He stressed that most of Kuwait''s active financial and commercial companies are directly and indirectly linked to the international economy and that they will need well supported banking systems to maintain safe credit transactions and protected debt recovery.
"Given the mentioned circumstances, closing the local stock market in Kuwait is a necessity to prevent further losses by registered companies and to protect the citizens from losing any more assets," he explained.
Kuwait must select very protective measures, especially after the fall of the oil price and the lack of trust in the international financial system," AlـAbdal concluded.

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